Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Christine A. Warner (CRD # 4001584) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into her failure to supervise regarding variable annuities.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Ms. Warner.
Ms. Warner first became registered in the securities industry in 1999. FINRA BrokerCheck shows that she is currently registered with Mt. Pleasant, TX based Monticello Financial Group, LLC (CRD # 300926). Her prior registrations and/or employments include Fortune Financial Services, Inc. (CRD # 42150) from May 2017 to April 2021 and Ensemble Financial Services, Inc. (CRD # 17443) from January 2006 to December 2014, and then from January 2015 to June 2015.
FINRA’s Allegations Against Christine Warner
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated December 8, 2022 (No. 2020065435401), Ms. Warner consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “While associated with Fortune, from May 2017 through July 2021, [Ms.] Warner failed to reasonably supervise the sales practices of two registered representatives”;
- “First, she failed to reasonably supervise variable annuity exchanges and surrenders recommended by Representative A and failed to detect that many of Representative A’s exchange applications contained material misrepresentations and omissions despite red flags that the forms were inaccurate”;
- “Between July 2016 and July 2021, Representative A engaged in a pattern of recommending that customers exchange variable annuities without considering whether such transactions were suitable in light of the substantial surrender charges that resulted from his recommendations”;
- “[Ms.] Warner was the firm’s designated principal responsible for the review of variable annuity transactions from May 2017 through July 2021. Although she delegated the review of some transactions to other principals, she retained the responsibility of reviewing and approving variable annuity exchange applications that disclosed a surrender charge”
- “Second, [Ms.] Warner failed to reasonably investigate red flags that Representative B was using an external email address to transmit securities-related documents to Fortune’s customers”; and
- By virtue of her actions, Ms. Warner violated FINRA Rule 3110 regarding supervision, FINRA Rule 2330 regarding deferred variable annuities, and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Suspends Christine Warner from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s December 8, 2022 AWC also indicates that Ms. Warner consented to the following sanction(s):
- A 40 business-day suspension from association with any FINRA member in all capacities; and
- A fine in the amount of $5,000.00.
Christine Warner Has No Prior History of Securities Industry Customer Complaints
In addition to Christine Warner being suspended by FINRA from the securities industry after an investigation into her failure to supervise regarding variable annuities, FINRA BrokerCheck for Ms. Warner reveals that she has no prior history of customer complaints and/or customer-initiated arbitration.
If you or someone you know has or had a brokerage account with Christine A. Warner and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.